Answer the following questions on risk and returna explain

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Answer the following questions on risk and return.

a Explain whether a risky asset could have a zero beta or negative beta and discuss the expected return on such an asset.

b Suppose Tencent Holdings Ltd has traded as low as HK$180 and as high as its current HK$355. Explain whether we can conclude that the stock of Tencent Holdings Ltd has a very high beta due to its large price movement.

c Suppose HSBC has an expected return of 15%, the risk-free rate is 3%, and the market risk premium is 10%. Determine the beta of the stock of HSBC.

Reference no: EM13380570

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